Help conquer Your Fears and Take Action with These Year-End Tax Savings Tips, Useful for Consumers and Small Business Owners

December 10, 2024

Tax season doesn’t have to be overwhelming. Ridgewood Savings Bank is here to guide you through year-end tax planning with practical tips that can make a big difference, whether you are a consumer or small business owner. With thoughtful preparation and smart strategies, you can head into the new year with confidence that you’ve taken some smart steps to set yourself up for financial success.

For Consumers: Year-End Moves to Maximize Savings

• Boost Your Retirement Savings: Contribute as much as possible to your 401(k) or IRA before the applicable deadline. Ridgewood offers IRA options to help you grow your retirement funds while reducing taxable income.
• Check to see whether you’re better off with a traditional IRA or Roth IRA.
• Donate to Charity: Give to causes you care about and you may enjoy the added benefit of lowering your taxable income. Remember to keep receipts and make your donations before December 31^st.
• Spend Your FSA Funds: If you have a flexible spending account, check the balance and use any remaining funds for eligible medical or childcare expenses before they expire.
• Make Home Upgrades: Thinking about installing solar panels or upgrading to energy-efficient appliances? These improvements might qualify you for valuable tax credits. Check it out for more information.

For Small Business Owners: Smart Strategies to Consider for Tax Efficiency

• Invest in Equipment: You may be eligible to take a deduction for the purchase of new equipment or supplies before December 31^st, according to Section 179 of the federal tax code.
• Fund Retirement Plans: Contribute to SEP IRAs or 401(k)s to reduce taxable income while investing in your future.
• Check Your Inventory: Use year-end inventory reviews to write off obsolete or unsellable items.
• Leverage energy-related and research and development credits. See how you can benefit from incentives for energy–efficiency.
• Plan for Future Tax Payments: Stay ahead of estimated taxes to avoid penalties. A Ridgewood Business Savings Account is a great tool to help set aside funds for quarterly tax payments and you can prepare for cash flow disruptions by putting money aside or arranging for a line of credit.

With these tips in mind, navigating tax season becomes a little easier. Ridgewood Savings Bank is here to support your financial journey—whether you want to maximize your tax savings or plan for a prosperous future. Visit us today to explore how our tools and services can help you achieve your goals.

This guide is provided for informational purposes only and is not tax advice. The information is subject to change and may not be applicable to your personal situation. Please consult a tax advisor as appropriate. Member FDIC. Member FDIC.